We should use the capacity of medium and small mines that
are operating or are inactive. Otherwise, we must launch newly explored
mines.

IMIDRO (Iranian Mines & Mining Industries Development & Renovation
Organization) CEO, while inspecting MIDHCO projects in Kerman Province, said
the steel chain is being completed with the measures taken over the past few
years.
Dr. Mehdi Karbasian said: “Fortunately, the ingot production capacity has
risen from 21 million tons in 1392 (2013/14) to 33 million tons in 1396
(2017/18), and we are currently approaching the 55-million-ton target. Along
with those units, coking, charcoal washing, coal and other chain units are
at the stage of operation which shows the steel chain is being completed.”

As to Zarand Iranian Steel Co, he said: “The capacity of the project is 1.7
million tons, which needs 3 million tons of coal, and this shows the
country’s need for new coal capacity.”

Karbasian added that the project will become operational thanks to the great
and valuable work done by its staff. He said that in the area of
​​coal,
very good work has been done by MIDHCO (Middle East Mines Industries
Development Holding Company). For example, the Khamroud mine has been
activated after years of exploration and after obtaining license, and now it
has made a progress of 35 percent.

The mine was handed over by IMIDRO in line with the government policies and
Article 44 of the Constitution.

The IMIDRO chief, saying that the equipment of this mine should be supplied
as soon as possible in order to meet the needs of the complex upon
commissioning, added: “The transfer of Jalalabad mine is also another
significant step taken by IMIDRO. This mine is supposed to provide iron ore
to the region.”

He stated that job creation is a national and revolutionary duty, adding
that participation of investment companies, including Pasargad Bank, in the
development plans of the mining and mineral sector has led to the growth of
value added and employment.

MIDHCO Investment Targets:
Karbasian appreciated MIDHCO managers for the key role they play at country
level, especially in Kerman Province, saying that 220 thousand billion rials
in investment has been planned to be made on MIDHCO projects, of which 180
thousand billion rials have been realized. “We currently have more than 3
billion tons of definitive iron ore reserves, which will be increased with
the explorations of IMIDRO and other organizations deep inside the ground.”
He also said there are vast coal reserves in Kerman and South Khorasan
provinces, but there is not enough investment in these areas.

Karbasian noted that over the past two years, 500 million tons have been
added to definitive iron ore reserves.

The IMIDRO CEO, during a visit to the Butia Iranian Steel Company (a MIDHCO
project), also said that it is very valuable to create direct employment for
9,000 people by MIDHCO. He stated: “Development of Kerman Province is
because of existence of mines and actualization of potential opportunities.
These successes come from using young people’s experience and expertise.”

Karbasian, referring to the agreement signed with MIDHCO to support small
and medium sized mines, said: “We should use the capacity of medium and
small mines that are operating or are inactive. Otherwise, we must launch
newly explored mines. In this direction, the insurance fund also supports
mining activities.” He noted: “Among the advantages of small and medium
mines is their mobility in deprived areas and job creation. At present,
MIDHCO runs contracts in this area.”

He added that with the full utilization of MIDHCO projects, 8 million tons
of iron ore concentrates, 7.5 million tons of pellets, 3 million tons of
sponge iron and 4.2 million tons of steel will be produced.

Dr. Karbasian said that in the 2017 global turnover, $2 trillion (43%) is
related to the steel chain. “Steel is also a sustainable factor and cause of
growth in our country, and the existence of vast reserves of mineral
resources, abundant energy, and access to open waters and ... are among
growth potentials.”

He added: “In 1392, Iran’s steel production ranked 15th and now we are in
the 13th place. According to our planning at the end of this calendar year
(ending March 2019), we will improve one rank, and if the projects are
completed in time, we will be among the top 10 steel producers.”

Mining Sector; Resistance Economy:
IMIDRO chief stated: “Considering that we want to export 15 to 20 million
tons of our 55 million ton output by 1404 (2025/26), and to become the top
regional power, we should pay attention to the mining sector as the
Resistance Economy.”

He added: “Support for the private sector, job creation, and the achievement
of Resistance Economy began in the eleventh government. Prior to the JCPOA
(Joint Comprehensive Plan of Action), there was little export in the copper
and steel sectors, but last year we exported $9 billion worth of steel to
Canada, Europe and Asia alone.”

IMIDRO-MIDHCO Cooperation:
MIDHCO managing director also addressed the meeting and said most of the
problems of the holding company had been resolved under Mr. Karbasian. “The
cooperation between IMIDRO and MIDHCO was very favorable during this period,
resulting in wealth creation by forging a sincere cooperation between the
government and the private sector.”

Ali Asghar Pourmand added the MIDHCO projects that have been completed or
are under construction create new wealth in the country. He pointed out that
the mining sector could be the driving force behind the development of the
country and move in line with the Resistance Economy.

Pourmand said: “This capacity is the result of presence of educated forces
and God given resources.”

Projects to Be Launched by the End of 1398 (2019/20):
On the Butia Iranian Steel Company, he said the complex included 5 mills
such as pelleting factory with a capacity of 2.5 million tons, a direct
reduced iron with a capacity of 2 million tons, steel mill with capacity of
1.5 million tons, a 500-megawatt power plant and a lime and dolomite factory
with a capacity of 450 thousand tons per year.

Pourmand added: The pelleting factory has become operational and other
factories are under construction.

According to
the official, so far 20 trillion rials have been invested in this complex.
He said with the full operation of the plants direct jobs will be provided
for 2,600 people and indirect jobs for 26,000 people.